Question

In: Economics

Describe the concept of rational ignorance. What implications does this idea have for the prospect of...

Describe the concept of rational ignorance. What implications does this idea have for the prospect of a well-informed populace?

Solutions

Expert Solution

Rational ignorance : It can be defined as an attempt of staying away from acquiring new knowledge because cost of gaining knowledge is more than potential benefit. Example- If cost of taking interview is more than actual cost of work then simply appointing a person on random basis is useful.

This terms was first used by Anthony Downs in an Economic theory of democracy. It has applications in diverse fields - economics ,management, politics.

implications this idea have for the prospect of a well-informed populace :

There is a very thin line between rational ignorance and intentional ignorance. if a populace wants to be well informed then rational ignorance has limited scope. It is true that agencies which act as source of new information should be trustworthy to make any conclusion and help in rational ignorance. Today due to data manipulation and nudges rational ignorance should be minimum. if there is perfect information about a certain thing then it can be used. Deliberate attempt by people to make information comes first and then ignorance can be considered.

In my opinion, rational ignorance is to be used on individual case basis. Scientifically and mathematically proved theories can use this but human sciences like politics and economics offer limited scope for rational ignorance.


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